Safety tipS for REALTORS®: How to Be Diligent in practice

By Barbara M. Brown, Esquire, with the assistance of law firm intern Sam Hijazi, Brown & Associates Law & Title P.A.

Changes in technology and market practices overall have increased the levels of fraudulent activity in the practice of real estate. It is impossible to be aware of every scam that exists, but that does not mean you should enter the market ill-informed. Here are five issues relating to REALTOR® safety and practices you can implement to navigate the market.

1. What are the indicators of a fraudulent real estate transaction?

The first glance at a real estate transaction can give a lot of hints that could lead to you concluding that the transaction is fraudulent. They are quite easy to point out. You should first analyze the deal and ask yourself: “Is this a reasonable asking price?” If the asking price is too low in comparison to the estimated value of the property, you might want to investigate it further. Next, you’ll want to investigate the owner of the property. Is the property vacant? Is the owner a foreigner? Answers to these questions will grant you a great lead.

2. How can I safely wire money?

When it comes to wire transfers, fraud isn’t the only issue, rather someone requesting/wiring money isn’t being careful enough. You should ALWAYS request payoff letters in a secure method. Whether that is in person or through a video call, you should never send it via email. Pay attention to the lender and any changes in their contact information, the bank of the lender, and compare it with other payoff letters. If you suspect that wire transfer fraud has occurred, file a complaint with local law enforcement or the FBI’s Cyber and internet-related Crime Complaint Center.

3. What can I do to ensure the seller of a vacant lot is the real owner?

It is a lot harder to ensure a vacant lot sale is legit since you can’t knock on the door of an invisible house and make sure the owners are truly selling their house. Since this is the case, scammers can claim to be the owner and attempt to sell online (on websites like Zillow) and fool buyers. With vacant lots, you should never use the information provided by online sources. Instead, send a letter to the address where property tax bills are sent.

4. What should I do if the signature on the deed is forged or if I suspect it to be forged?

A deed that is forged is void. Since forgery is a civil tort, all that you need to do is prove by a preponderance of the evidence to invalidate a forged deed. If you suspect that the signature on the deed is forged, you should look for recorded proof of the time of execution of the deed, verification by the owner of the property, and any changes made to the document after it was signed. Indicators include the seller being out of state or the seller only communicating via mail.

5. How can I make sure a notarized document is not fake?

Fake notaries in real estate transactions are becoming a common occurrence with online notarization being available. You should verify that there is a stamp on the notarized document, and that it is valid. Indicators of fraud include there being no identification provided or the seller insisting on using their own notary. You can conduct a notary search online at online-notary.sunbiz.org. Other practices you can implement are requiring a second form of identification and contact information and verifying the notary is affiliated with an applicable government agency.

Most importantly, we want all REALTORS® to be safe when practicing and to remember that it is always a good idea to take precautions, even if it may cost you more time in the short run.